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Issues:
1. Interpretation of Section 34(1)(c) of the Estate Duty Act, 1953 regarding aggregation of shares for estate duty calculation. 2. Applicability of previous judgments in similar cases. 3. Conflict between judgments of different High Courts on the same legal issue. 4. Constitutional validity of Section 34(1)(c) challenged in previous cases. Analysis: The primary issue in this case revolves around the interpretation of Section 34(1)(c) of the Estate Duty Act, 1953, concerning the aggregation of shares for estate duty calculation. The deceased's share in the Hindu undivided family property was determined by the Assessing Officer, who added the value of the share of three lineal descendants for rate purposes. The Tribunal, relying on a judgment of the Madras High Court, held that only the property passing or deemed to have passed could be charged for estate duty. The Tribunal concluded that the share of lineal descendants should not be aggregated for rate purposes based on the machinery nature of Section 34(1)(c). A significant aspect of the case involves the applicability of previous judgments in similar scenarios. The Tribunal did not follow the law laid down by the jurisdictional High Court in a previous case, where the value of the share of lineal descendants was allowed to be aggregated for determining the rate of estate duty. The Tribunal's error in not applying the precedent set by the High Court led to a conflicting interpretation of the law. Furthermore, the conflict between judgments of different High Courts on the same legal issue adds complexity to the case. The Madras High Court's decision was challenged in the Supreme Court, which reversed the judgment and affirmed the position taken by other High Courts, including the one in the present case. This conflict highlights the importance of uniform interpretation and application of the law across jurisdictions. The constitutional validity of Section 34(1)(c) was also challenged in previous cases, where the vires of the provision were upheld by the High Court. The courts emphasized that the aggregation of shares, including those of lineal descendants, for rate purposes is in accordance with the provisions of the Act and serves the purpose of determining the rate of estate duty accurately. In conclusion, the court held that the share of three lineal descendants could be aggregated with the share of the deceased for rate purposes, contrary to the Tribunal's decision. The judgment emphasizes the importance of following established legal precedents and upholding the uniform application of statutory provisions across different cases and jurisdictions.
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